Imperial Petroleum to Acquire Stake in Arkoma Basin Acreage
|Tuesday, April 13, 2004
Imperial Petroleum has signed a letter of intent to acquire a 50% interest in approximately 17,700 acres of leases, including 5 operated wells and 14 non-operated wells in the Arkoma Basin of eastern Oklahoma and southwestern Arkansas. Closing is subject to negotiation of a definitive agreement, approval of Imperial's lender and title due diligence.
Jeffrey T. Wilson, President of Imperial said "In the development of Imperial, we have been seeking a project of this nature to provide the type of upside available in owning and operating a significant exploration position in an area as prolific as the Arkoma Basin. There are some 25 exploration prospects that have been developed on the acreage based on well control and 2-D seismic at depths less than 5,000 feet aimed primarily at developing natural gas near existing pipelines. In addition there is approximately 600 mcfpd of existing production in the package, including two wells that are being tied into the pipeline at the present time. Approximately 80% of the leases are paid up until 2008."